Multiple Integrated Performance Management Systems: IC and BSC in a Software Company

Both intellectual capital reports and balanced scorecards relate corporate strategy and integrated performance management systems, and they both expand reporting beyond the financial view with categories of customers, processes, and employees. This paper discusses their differences and complementarities based on an analysis of their use in one mid-sized Danish software company, Systematic Software Engineering. It has published intellectual capital statements for two years and recently implemented a balanced scorecard. The intellectual capital report communicates externally as well as internally about the firm's knowledge management activities, and the balanced scorecard creates accountability in software projects. It is suggested the two types of extended reporting are different and yet complementary when applied in this firm. This includes a marked difference in use of indicators.